Democrats' foreclosure plan: more leeway for Fannie, Freddie

Bush administration opposes bigger role for GSEs

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Democrats rolled out a plan Wednesday to address rising foreclosures that would temporarily increase caps on the loan portfolios of mortgage repurchasers Fannie Mae and Freddie Mac and provide more money for housing counselors.

Comparing the impact of the housing downturn and upheaval in mortgage markets to Hurricane Katrina, top Democrats including Speaker Nancy Pelosi and Senate Majority Leader Harry Reid urged President Bush to appoint a special advisor to coordinate the government’s response.